February 5, 2004

China To Build Railways For Brazilian Soy

China has plans to build railways and other infrastructure in Brazil in return for Brazilian soy and other products such as cotton, and cane-based ethanol, Brazil's Agriculture Ministry said on Tuesday.

As leader of a Chinese delegation visiting Brazil, Yang Wei Jian, director general of China's Base Jake Import and Export company, said China could import 30 million tonnes of soybeans annually and Brazil could be the primary supplier, currently the role of the United States, the ministry said.

Executive secretary of Brazil's Agriculture Ministry, Jose Amauri Dimarzio, said the first letters of intent could be signed as early as May when Brazilian President Luiz Inacio Lula da Silva visits China, which has become one of the biggest importers of Brazilian goods, most notably soybeans.

"China has reserves for foreign investments of $400 billion and the country has an annual rate of growth of 5 to 8 percent," Dimarzio said in a statement, after meeting with Jian and the Chinese delegation now touring Brazil.

Brazil's infrastructure is woefully underdeveloped for the size of its economy and agricultural sector, both of which are the largest in Latin America. Jian said China could build railways at a cost 30 percent cheaper than Brazil.